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A guide to investing in overseas property for investment or retirement

Tuesday 3rd July 2018

Written by Mark Burns, Hopwood House

Many people considering an investment, whether as your first or one of many, often look towards overseas investment opportunities as they can bring great success and profit, whilst also giving investors an excuse to visit a country outside of the UK.
It is widely thought that overseas property can provide UK investors with better opportunities for higher rental income and larger capital growth, which is often the driving force behind an overseas investment.
Although overseas investing can be very appetising and profitable, you do need to be sure about what you are getting yourself into and be aware of what is required of you, as is the case with any form of investing.
The location of your investment
Something that you need to think long and hard about before an overseas investment is the actual location of the investment, as this can truly impact the amount of success, and ultimately profit, that you achieve.
Certain property markets across the world are known as investment hotspots, and after consulting an expert, you should be looking to make your investment within one of those areas. You may be able to find bargain properties that can bring strong returns and appreciate in value over a number of years. The location is also important in terms of obtaining a mortgage, particularly as certain areas of the world are less strict and actually encourage overseas investment into their property.
You should ensure that you purchase a good property within an area that is close to the local amenities and popular with tourists, as this is likely to help you attract more people to your property.
Research will help you to choose the best place base on popularity, but you should always make sure that you compare your findings to the potential financials that you could achieve. The best possible situation would be to purchase a property that is already occupied by good tenants that pay on time each and every month, as this provides you with extra security too.
Paying for your investment
Cash buyers are the best form of overseas investors, despite it becoming much easier to obtain a mortgage in certain circumstances. When considering the investment, you should be sure to keep in mind changing interest rates and currency exchange rates, as any changes to these could mean that your profit levels could go up or down based on the current climates.
You should also be sure to check local tax regulations and wider charges, as these could also impact on the way that you pay for your property, or even the way that you receive money once selling it.
Rental income from your property
In order to achieve rental income from your property, you need to ensure that your property is occupied by tenants. Depending on how you wish to work, you could either have longer term tenants that live within the property, or you could rent it out several times a year on short term agreements, such as to holidaymakers.
Either way, you need to consider how you will attract tenants to your property, including by setting your rental price at an appealing rate to attract tenants.
However, although a lower rental price will attract tenants, you also need to ensure that your price point generates you enough profit to be worth your time and investment. A way to increase your chance of bringing in tenants is to work with a third party who effectively manage the property, bringing in more tenants than you may be able to do so yourself, although this will eat into your profit levels.
*For more information on overseas buy-to-let investment, please contact Hopwood House.

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Editorial Contact Details - Conor Shilling
0845 672 6000
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